Skinhealth Systems Inc. · NASDAQ:SKIN
Skinhealth Systems — Beauty Health — Q4 2021 Earnings Presentation
18 slides from Skinhealth Systems's earnings presentation, Feb 22, 2022
Slide 1: 4th Quarter 2021 Earnings Presentation
ATH QUARTER 2021 EARNINGS PRESENTATION FEBRUARY 22, 2022 ® BEAUTYHEALTH
Slide 2: Disclaimer
DISCLAIMER \s cettain fonvardlooking statements sto f¢ nol limited to, expectations of future operating results or financic Health Company {the "Company't, the calculation of lain key financial and operating metics, capital expenditures, the it expansion inlo new markels bility 2 certain stalegic in
Slide 3: Agenda
AGENDA @ Opening Remarks @ 4° Quarter 2021 & Fiscal Year 2021 Financial Results © 2022 Outlook @ 28A BeautyHealth Participants LIYUAN WOO Executive Chairman President and Chief Chief Financial Officer \S Executive Officer a NG i ¢. BM | cca saunwsess 7S ANDREW STANLEICK
Slide 4: Opening Remarks
y J OPENING REMARKS BRENT SAUNDERS Executive Chairman , ANDREW STANLEICK President and Chief Executive Officer
Slide 5: Key Highlights
KEY HIGHUGHTS = $260.1mm exceeded 2021 guidance with a +118.3% increase vs FY20 and +56.2% increase vs FY19 1) SIGNIFICANT NET SALES GROWTH DEMONSTRATES STRENGTH OF BRAND = 72.9% GAAP / 76.5% adjusted as cost leverage increasing with growth and distributor acquisition accretion offset supply chain e
Slide 6: The Master Plan
THE MASTER PLAN We are a category creator. We deliver beauty health experiences — reinventing our consumer's relationship with their skin, their bodies, and their self-confidence. N°, Nurture dir elatic th our « brand nd driv them t
Slide 7: 4th Quarter / FY 2021 Results & 2022 Outlook
AT QUARTER / FY 2021 RESULTS & 2022 QUTLOOK } LIYUAN WOO V w Chief Financial Officer
Slide 8: The HydraFacial Economic Model
THE HYDRAFACIAL ECONOMIC MODEL uichases a Delivery System, empowering them to ol @ , [= Firstime buyers As fo their consumers system sold to vider 9 ying ydraFacial expe ips, solutions, serums} additior lth to our providers Delivery Systems. HydraFacial markets HydraF tyHealth dri awaret with market
Slide 9: 4th Quarter 2021 Financial Highlights
ATH QUARTER 2021 FINANCIAL HIGHLIGHTS Net Sales ($mm) Net Sales Growth growth x $77.9 +56.0% oe $49.9 » Piss RE $79 zm =a Gross Margin Adjusted EBITDA ($mm|? GE +870bps 4Q20 i E = |
Slide 10: 4th Quarter Cost Detail
AT QUARTER COST DETAIL % Sales ($mm) 4Q21 4Q20 Change 4Q21 4Q20 Change Commentary $56.8 +$33.8 72.9% 60.8% 412.1% y Higher invest Selling & Marketing 37.0 421.1 47 0% 42.0% +5.0% 9 commissions due to increase in s Ga 25:0 nie 140 a00% 29.08 ayy 7 inc spend on di afrastructure for global Sa nis i iia
Slide 11: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS December 31, 2021 [unless otherwise stated) $901.9 million cash and cash equivalents on balance sheet 100% of Public Warrants exercised or redeemed by 11/05/21 Approximately 7 million Private Warrants outstanding $750 million 1.25% convertible notes due 2026 Use of proceeds:
Slide 12: Fiscal Year 2021 Highlights
FISCAL YEAR 2021 HIGHUGHTS Net Sales ($mm) Gross Margin Adjusted EBITDA ($mm}! Direct markets entered Cash to balance sheet Phase 1 implemented Research analysts covering SKIN Net Sales Growth vs 2019 Delivery Systems Sold Delivery System ASP Install Base
Slide 13: 2022 Outlook
2022 OUTLOOK Net Sales ($mm) Adjusted EBITDA ($mm}! 2022 Growlh Initiatives Capital Expenditures Outlook = Up to $20.0mm
Slide 14: Questions / Participants
ANDREW STANLEICK President and Chief i Executive Officer BRENT SAUNDERS Executive Chairman LIYUAN WOO Chief Financial Officer
Slide 15: Appendix
qm. LOVED AROUND THE WORLD ~ ANDNEAR YOU \\ woe Tl ae APPENDIX
Slide 16: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES Reconciliation of Gross Profit to Adjusted Gross Profit Months Ended December 3 2021 2020 $77.9 9 ($21.1) 14.8) profit $56.8 $23.0 Gross margin 72.9% 60.8% Adjusted to exclude ed compensation ex; 0.2 - 0.4 - iation and amortizat 2.7 10.3 10.8 Adjusted gross profit
Slide 17: Reconciliation of Non-GAAP Measures (Cont'd)
RECONCILIATION OF NON-GAAP MEASURES (CONT'D) Reconciliation of Net Income (Loss} to Adjusted EBITDA and Adjusted EBITDA Margin 12731720 03731721 09/30/21 12731721 wo $47.5 $68, 5 9.3 04 0. 1 3.3, 43 4 $36 97.0 $E5 W7 $327 Adjusted EBITDA moi 9.A% 14.8% 10.9% 6.5% 12.6%
Slide 18: BeautyHealth closing slide
WS BEAUTYHEALTH’ IN A MARKET WITH HUGE GLOBAL OPPORTUNITY. USING A PROFITABLE & SCALABLE BUSINESS MODEL... DEMONSTRATING EXCITING GROWTH WE ARE A CATEGORY CREATOR